Friday, July 16, 2010

Grand Old Dame takes one step closer to destruction

Iran’s 3-1 win over Singapore in January this year in a qualifier for the 2011 Asian Cup was the last football match at the National Stadium.

Three years after its official closing ceremony, work has finally begun to prepare the Grand Old Dame for demolition, making way for the $1.87-billion Sports Hub.

The pitch where football stars from here and all over the world played on has already been pulled out, but some of it will be preserved to become part of the new facility when completed by early 2014.

“The Singapore Sports Council (SSC) is working closely with the Singapore Sports Hub Consortium (SSHC) to ensure the legacy of our old National Stadium is maintained and remembered in the new structure,” SSC director for corporate communications and relations Alvin Hang told MediaCorp yesterday.

“Apart from displaying some of the items at the new Sports Museum, other artefacts could be placed elsewhere around the Hub.”

These include the Seiko clocks above the turnstiles, some of the 300 giant floodlight bulbs, the wooden spectator benches and the cauldron that was first lit at the 1973 Seap Games. There are currently no plans to auction the items off, although the SSC would consider proposals to organise one.

The 20 sports and recreation centres island-wide could also receive some of the items from the current 55,000-capacity arena, which was opened in June 1973.

From now until the stadium is pulled down, the carparks around it will be closed in phases, starting with carparks A to D and J today.

In January 2008, the Government awarded SSHC the tender to design, build and operate the hub on a 25-year lease, in what is the world’s largest Public-Private Partnership project. The new Sports Hub will include a 55,000-seat stadium with a retractable roof, a 6,000-seat aquatics centre, a sports institute and a water sports centre.

The project stalled after the global economic meltdown led to escalating building costs and only recently got back on track.

“Negotiations are at the final stage and construction will commence immediately after the official announcement of the contract completion,” said Hang. “The timeline, which includes demolition of the old National Stadium, will be revealed during the official announcement.”

Source : Today – 16 Jul 2010

Just steps from MacRitchie …

 Property giant City Developments (CDL) has officially launched 368 Thomson today. The freehold residential development is located in the prime District 11 residential enclave and occupies the sites of the former Concorde Residences, Balestier Court and Bright Building.

It is a quick stroll to Novena MRT station and a stone’s throw away from the MacRitchie Reservoir. The development has a 36-storey tower with 157 apartment units. It also features Therma jet pools, children’s aqua treat areas, a gymnasium, a social lounge and a club house.

CDL said more than 85 per cent of the units have already been snapped up. It added that the price per square foot had increased marginally by 2 to 3 per cent since the previews last week. During the previews, the units were priced at an average of $1,350 per sq ft translating to a price tag which ranges from $918,000 for the one+study apartments to $4.4 million for the five-bedroom penthouses.

CDL said that the majority of buyers are Singaporeans with Permanent Residents and foreigners making up about 25 per cent of the buyers. CDL’s group general manager, Mr Chia Ngiang Hong, said: “With its prime District 11 location, freehold status and attractive pricing, 368 Thomson represents an excellent investment opportunity and also good rental potential.”

Source : Today – 16 Jul 2010

HDB extends Revitalisation of Shops Scheme

The Housing and Development Board is extending its Revitalisation of Shops (ROS) Scheme – introduced in 2007 – to even more heartland retailers.

Announcing the extension, Senior Minister of State for National Development, Grace Fu, said the extension of the scheme will involve 35 sites with an estimated budget of S$6 million.

Thirty-four sites with more than 3,000 shops have already benefited from S$17 million of funding under the two previous batches.

Speaking at a HDB retail seminar on Friday, Ms Fu said all the sites are progressing well in their revitalisation efforts.

Three sites – Teck Whye Shopping Centre, Serangoon North Neighbourhood Centre and Bedok Town Centre – have completed their upgrading works, and more than 100 events have been organised by the Merchant Associations.

She said shopkeepers reported a 10 to 20 per cent boost in sales, and greater vibrancy after the upgraded works and the promotional events.

Ms Fu said that beyond the ROS scheme, HDB will also help other shop tenants enhance their shops, by granting a half-month rent-free period for them to carry out renovation works within their shops during tenancy renewals and where rejuvenation plans, such as Town Council improvement works, have been announced.

She said the government will set aside S$2 million each year for this, benefiting more than 6,000 shop tenants.

HDB has also launched Where2Shop@HDB Mobile. Consumers can now access information on Where2Shop on their mobile devices.

Ms Fu said these new measures announced on Friday will help the HDB retailers to position themselves better for their business.

Source : Channel NewsAsia – 16 Jul 2010

Private home sales dip

 World Cup, school holidays, lack of supply among reasons cited for drop

Private home sales continued to slow last month, falling to below the 1,000-unit mark for the first time this year.

Data from the Urban Redevelopment Authority (URA) showed that only 847 new units were sold last month – the lowest number of private home sales so far this year.

The figure is 22-per-cent lower than the 1,083 homes sold in May.

Yet, analysts seemed unperturbed by the softening trend, with some citing the World Cup fever and the month-long school holidays as among the reasons that contributed to the lower sales last month.

“Demand is starting to stabilise, reaching a more sustainable level,” said Mr Nicholas Mak, a real estate lecturer at Ngee Ann Polytechnic.

Still, some analysts believe that the latest figures may not suggest that demand for private homes have cooled down. Instead, they attributed the decline in sales to the lack of supply as reflected by the drop in the number of new units launched.

Last month saw a total of 1,010 units launched compared to 1,134 units launched in May and a hefty 2,084 units launched in April.

This may have resulted in buyers holding back their purchases as they wait for more options to become available through future launches, analysts said.

“I think the developers couldn’t launch enough of the mass-market segment as they have exhausted most of their earlier sites and cannot get new sites secured quickly enough for it to be launched for sale,” said Mr Colin Tan, head of research and consultancy at Chesterton Suntec International.

ERA Asia Pacific associate director Eugene Lim reckoned that the decline in the number of property launches was because developers had held back due to jitters arising from the euro zone crisis.

Meanwhile, about 51 per cent of the total units sold in June were located in the suburban areas with 429 units sold there, among which are The Minton and Waterfront Gold.

Homes located in the city and prime districts also did well, totalling 143 transactions for the month. However, home sales in the city fringes declined with only 275 units sold out of the 445 units launched there.

Ms Tay Huey Ying, director for Research and Advisory at Colliers International, said this may be because price points in the area had risen by about 18.3 per cent in the first half, based on URA flash estimates.

That is higher compared to the core central region which gained 9.7 per cent and outside central region which increased by 10.3 per cent.

While there was a drop in the sales of luxury homes, the price points for last month were higher than in May, said executive director of CBRE Research Li Hiaw Ho.

The number of units sold in the first half of the year totals 8,158, said CBRE.

Analysts said monthly sales in the coming months could average between 900 and 1,000 units and total home sales for the year could be in the range of 12,500 to 14,000 units.

There could still be a bright spot this month as market watchers expect better home sales as developers gear up for more launches ahead of the Hungry Ghost festival in August.

The Government’s upward revision of its gross domestic product growth forecast to between 13 and 15 per cent for the year may also help improve sentiment among home buyers, they said.

Source : Today – 16 Jul 2010

A-REIT’s net property income grows 8.2% to $87.3m in 1Q

 Ascendas Real Estate Investment Trust says Net Property Income increased by 8.2% year-on-year to $87.3 million while distributable income rose 3.5% to $63.1 million for the quarter ended June 30 (1Q FY2010/11).

Ascendas also achieved a DPU of 3.37 cents for the quarter.

Net property income increased by a smaller extent of 8.2% due to higher operating expenses, attributed to the enlarged portfolio, higher utilities expenses as well as the cessation of land rent rebates granted by the government in 2009.

Ascendas says occupancy rate for the portfolio has remained stable at 95.6%.

As at 30 June 2010, Ascendas has a portfolio of 92 properties and a total asset value of about $4.9 billion housing a tenant base of about 930 international and local companies.

Barring any unforeseen events, Ascendas aims to at least maintain the previous financial year’s level of net income for FY2010/11.

Source : The Edge – 16 Jul 2010

Cavenagh Mansions sold to SDB Asia for S$42.4m

Freehold residential property Cavenagh Mansions has been sold to SDB Asia for S$42.4 million.

Property consultancy Knight Frank said this translates to a land price of S$1,025 per square foot per plot ratio on the potential saleable area of 41,608 square feet.

SDB Asia is a wholly-owned subsidiary of Selangor Dredging Berhad (SDB).

SDB is a property development and management group listed on the main board of Bursa Malaysia.

Cavenagh Mansions sits on a land area of 19,813 square feet.

The district 9 site currently comprises 21 apartment units with sizes ranging from 90 to 153 square feet.

The development charge is estimated at S$267,000.

Cavenagh Mansions is fully owned by Teck Jin (Private) Limited, and the sale therefore does not need approval by the Strata Titles Board or High Court.

Source : Channel NewsAsia – 16 Jul 2010

CapitaCommercial Trust sells StarHub Centre to Frasers Centrepoint

CapitaCommercial Trust (CCT) is selling the StarHub Centre to Frasers Centrepoint for S$380 million in cash.

StarHub Centre is a 10-storey non-Grade A office building with retail space next to FCL’s Centrepoint mall.

It currently has a committed occupancy of 68.2 per cent and some 280,000 square feet of lettable space.

The current lease for the site expires in January 2095.

CCT disclosed that it has received in-principle approval from the Singapore Land Authority to top up the lease to 99 years, subject to the payment of a differential premium.

Earlier this year, the Urban Redevelopment Authority gave its approval for the building to be converted into a residential block.

But 20 per cent to 40 per cent of the gross floor area must be retained for commercial use.

CCT expects to make approximately S$375.8 million from the deal after transaction costs.

StarHub Centre was last valued at S$266.7 million by CB Richard Ellis in June this year.

Frasers Centrepoint CEO Lim Ee Seng said that with its strategic location in the heart of Orchard Road, the StarHub Centre has great redevelopment potential for a high-end mixed residential and retail development.

Source : Channel NewsAsia – 16 Jul 2010

Business booming at recently re-opened Customs House

 Business owners at the recently re-opened Customs House said their business has gone up by as much 80 per cent since it opened in May.

Part of the Fullerton Heritage precinct, the former home of the Singapore Customs Police is now a trendy dining and entertainment destination.

Customs House was one of the earliest of Singapore’s public buildings to be built in a modern style to blend with the city’s skyline.

But only 4 restaurants occupy the refreshed structure, creating a boutique-destination feel.

Three of the restaurants are already in operation. The fourth is slated to open at the end of this month.

To keep the original character of the building, architects were careful to modify only 30 per cent of the structure during restoration.

This included replacing concrete walls with glass to take advantage of the panoramic views.

Source : Channel NewsAsia – 16 Jul 2010

Thursday, July 15, 2010

En bloc sales rush pays off

New rules come into effect today

The rush to complete the process of a couple of en bloc sales this month have probably paid off for the owners. This is because if there had been any delay, their properties would be subject to new en bloc rules which will come into effect today.

Two recent en bloc sales sealed this month are the People’s Mansion at Lorong 31 Geylang sold for $42.68 million, and Meng Garden Apartments at Killiney Road for $137 million.

Changes to the Land Strata Titles Act will kick in today, after the Amendment Act was enacted in Parliament on May 18.

A spokesperson from the Ministry of Law said the new legislation will have no impact on en bloc deals which have been completed on July 14 or earlier.

The objective of the amendment is to discourage numerous attempts at en bloc sales when there is insufficient interest from the owners.

Among them, a two-year restriction period will be imposed starting from the date an initial collective sale attempt failed.

The first re-try to convene an Extraordinary General Meeting to reappoint a sale committee will need the backing of at least 50 per cent share value or total number of owners.

For second or subsequent re-tries during the two-year period, 80 per cent will be needed.

Currently, the requisition threshold is set at 20 percent by share value or 25 percent of the total number of owners.

Analysts told MediaCorp that overall, this is good news as the amendments will provide more clarity to the en bloc sales process and balance the interest of property owners.

Mr Colin Tan, head of research and consultancy at Chesterton Suntec International said: “If the majority of owners have a real interest to go for en bloc, these new rules don’t matter.

“This will only affect ongoing en bloc projects that have many undecided or opposing owners.

“The new ruling will protect these owners from being harassed into selling their property for en bloc.”

Property watchers reckon that with these rules, fewer en bloc will go through in future, because now it will be harder for aggressive property owners to keep trying their luck for an en bloc – especially when majority of owners are not willing to sell their property.

Mr Karamjit Singh, managing director at Credo Real Estate, said: “The two-year restriction will raise the hurdle for owners to get started once again.”

Another amendment is that the Strata Titles Board will be empowered to issue a “stop order” to cease mediation once it becomes clear that the affected owners want adjudication to be done in court.

Currently, the Strata Titles Board mediates and adjudicates on objections filed by minority owners in en bloc sales.

The change could help to reduce the costs and time taken to resolve more contentious en bloc applications.

Some of the changes will apply to the en bloc sale committees.

Among them is the requirement for those standing for election to the sale committee to declare the extent of ownership that they or their immediate family have in the development.

To ensure that the sales process is not dragged out, the sale committee will have one year to obtain the first signature for the Collective Sale Agreement, or it will be automatically dissolved.

The one-year time frame will start from the date the sale committee is formed.

These changes will apply to en bloc applications made on or after the date of commencement of the Land Titles (Strata) (Amendment) Act.

Source : Today – 15 Jul 2010

Older condominiums still selling at a loss

Despite complaints about ever-rising property prices, some private properties are still valued below their original purchase price.

Shin Min Daily reported that even with the recent boom in the property market, some condominiums which are more than 10 year old are priced about 20 per cent cheaper than newly built ones.

Home buyers in Singapore tend to favour the latest ‘flavour’ on the market, property prices seem to indicate.

Many of these properties were built and bought around 1996, when property prices were also at a peak. Now, 14 years down the road, these properties are still valued at prices below their sale price in 1996, forcing some home owners to sell at a loss.

Property agents told Shin Min Daily for about 20 per cent of the houses that were built in that period, the resale price is still lower than what the owners paid in 1996/7 – even for those near MRT stations and good schools.

Still selling at a loss

One of these under-valued condominiums is Bishan 8 which is located at the junction of Bishan Road and Bishan Street 21.

Attracting long queues of interested buyers when it was launched in 1997, units in Bishan 8 were priced at $1,100 per square foot (psf) then.

Last month, one of the units there was sold for $912 psf. For a unit of about 1,162 square feet, the owner would have lost about $220,000.

Another property launched at Stevens Road in May 1997 was selling at $1,900 psf, but in March last year one of the units was sold at $1,620 psf.

May recoup investment within five years

PropNex CEO Mr Mohd Ismail said that with new developments being pushed out all the time, home buyers have more than enough choice and many prefer the new apartments.

Ngee Ann Polytechnic real estate lecturer Mr Nicholas Mak felt that buyers may find the older condominiums’ design and facilities outdated.

But Mr Ismail also said that owners of older condominiums may be able to recoup their investment in three to five years.

“As the property market improves, the prices for the older properties will also rise. I believe that the prices will be on par with what they paid within five years,” he said.

As the properties are at prime locations, he believes the owners will eventually be able to make a profit.

Source : AsiaOne – 15 Jul 2010

Changes to en bloc sale legislation

 The Land Titles (Strata) (Amendment) Act, enacted by Parliament on May 18, will take effect from 15 July 2010.

The key provisions of the new Act include:

* Refinement of the Strata Titles Board’s role to focus on mediation for en bloc sale applications.

* Imposition of a two-year restriction period, from the date of the initial failed en bloc attempt. The first retry requires approval from 50 per cent of the combined share value or number of owners. For the second and subsequent re-tries, approval from 80 per cent is needed.

* The automatic dissolution of any Sales Committee that has not received any signatories to its Collective Sales Agreement (CSA) within one year of the Committee’s formation. For existing committees who have not collected any valid signatures for their CSA as of the date of commencement, the one-year period begins on the date of commencement of the new Act.

* Expansion of the disclosure requirements to stipulate that candidates standing for election to the Collective Sale Committee must declare the extent of ownership that he or any connected person has in the strata development.

* Stipulation of a one-hour waiting time for the quorum of 30 per cent of share value to be reached, failing which the Extraordinary General Meeting would be dissolved.

CapitaLand’s Australand establishes A$1.3b debt facility

CapitaLand’s Australian unit, Australand, said on Thursday that it has established a 1.3 billion Australian dollar unsecured debt facility.

This replaces existing secured facilities totalling A$1.15 billion.

The new facility comprises three tranches: A$325 million expiring in June 2012, A$650 million expiring in June 2013 and A$325 million expiring in June 2014.

Australand said the new facility reduces the concentration of debt expiring in any one year and extends its debt maturity profile to 2.6 years.

The syndicate consists of existing lenders to Australand with the addition of one new lender.

Australand said pricing of the new facility is in line with current market rates and is an improvement on margins of the replaced facilities.

It has also established a Euro Medium Term Note Programme to enable access to offshore debt capital markets.

It said this will assist it in further diversifying its sources of debt capital and improve access to longer dated funding.

Source : Channel NewsAsia – 15 Jul 2010

32,000 flat owners sublet their flats as of end June

Some 32,000 flat owners have registered their subletting of rooms with HDB as of end June.

HDB has also issued a reminder to those whose tenancies started before February, that their six months grace period for registration will end at the end of this month.

Those who sublet from February 1 are required to register with HDB within seven days from the start date of the subletting.

Flat owners are also required to notify HDB when they renew or terminate their subletting contracts, and when there are changes to their subtenants’ particulars.

There’s however no need to seek prior approval for subletting of rooms.

HDB says this requirement supports the Home Affairs Ministry’s ongoing efforts to eradicate loansharking activities, and to better protect residents.

The housing board says it may impose a penalty on those who flout the rule.

The penalty may involve a fine of up to $3,000 or for recalcitrant cases, compulsory acquisition of their flats.

Source : Channel NewsAsia – 15 Jul 2010

Private home sales in June falls to 847 units: URA

Demand for new private residential properties continues to moderate.

The number of new homes sold fell in June to 847 units, according to figures from the Urban Redevelopment Authority.

That’s down from 1083 transactions done in May 2010.

The top sellers in June include projects like The Minton, La Brisa and Waterfront Gold.

URA says 143 new homes in the city and prime districts were sold during the month.

While the city fringe saw 275 units changing hands.

Homes in the suburban areas were most popular with 429 units sold.

All in, developers placed 1,010 units of new homes for sale in June.

Source : Channel NewsAsia – 15 Jul 2010

More than 100 units of Terrene at Bukit Timah sold

Property developer UOL Group has sold more than 100 units of its latest condominium project, Terrene at Bukit Timah.

This is almost 80 per cent of the 130 units released at a private preview which started on July 8.

UOL will be releasing the remaining 42 units for the official launch on Friday.

The 999-year leasehold condominium is a 50-50 joint venture between UOL and La Salle Asia Investment Management.

The apartments are priced at an average of S$1,250 per square foot for a typical unit.

They range from S$719,000 for a one-bedroom unit to S$2.79 million for a five-bedroom penthouse.

UOL said 23 of the 30 penthouse units have been sold.

Demand came mainly from Singaporean buyers, with majority from private homes in the nearby vicinity.

The five-storey development of 172 units, stretches across more than 130,000 square feet near the Bukit Timah Nature Reserve.

The development is expected to be ready by April 2014.

Source : Channel NewsAsia – 15 Jul 2010

Beijing unlikely to reverse property tightening

Govt may fine-tune property policy as economy softens in the coming months

Investors who bet that China will declare an early end to its property tightening campaign are doing so at their own peril.

While the government is likely to fine-tune property policy as the economy softens in the coming months, it is not about to reverse tightening measures that it believes are critical to safeguarding China’s long-run growth prospects.

Property prices have only just started to dip. Falls should turn much steeper, with investment in the sector also taking a clear hit, before the government takes its foot off the brake.

‘It is, of course, aware that declining prices and investment are the likely result,’ said Xing Ziqiang, an economist with China International Capital Corp in Beijing.

‘But so long the economy is doing all right, slowing gradually with no severe unemployment problem, the government should be able to tolerate this.’

That will disappoint those who thought they had already spied a U-turn in Chinese policy.

Earlier this week, Chinese property shares soared after a report that the government would relax a ban on mortgages for third homes.

This seemingly small change would have been explosive in its symbolism, implying that the government was flinching at the first signs of weakness in the property market.

With unusual alacrity, the banking regulator and the housing ministry published statements to deny the rumour.

‘We don’t see a loosening of policy in the near term because even though some cities have seen considerable price corrections, others haven’t,’ James Xia, vice-chairman of Chinese developer Evergrande Real Estate, said this week.

Nationwide, Chinese housing prices edged down 0.1 per cent last month from May, their first monthly fall since February 2009 – and the first real fruit of the tightening steps, which have included higher down payments and reduced lending to developers.

Notwithstanding the wishes of some investors, if China were to stand down now from its property tightening campaign, it could prove deeply disruptive to the economy’s development.

Just last week, Kenneth Rogoff, a former chief economist at the International Monetary Fund, warned that the country’s housing market was a bubble.

Fleshing out this view, Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think tank, made the jaw-dropping claim that there are about 65.4 million empty apartments and houses in China’s cities and towns, many of them bought up by people wagering on a constantly rising market.

Although Mr Yi’s estimate, based on electricity meter readings, was met with scepticism, it still served to underscore how the government has a way to go to put the country’s housing market on a more sustainable footing.

‘We believe many analysts are underestimating China’s determination in curbing property prices,’ Ting Lu, an economist with Bank of America-Merrill Lynch, said in a note.

A little more than two years before the end of China’s decade-long political cycle, the current crop of leaders would shudder at the prospect of a bubble inflating in the property sector and bursting just before they leave office, Mr Lu said.

Politics aside, the economic importance of getting it right is abundantly clear. The property sector makes up about 10 per cent of national output and a quarter of capital spending.

The government knows it has to walk a fine line. Its zealousness in curbing a previous property construction boom bore fruit just as the global financial crisis reached a crescendo in late 2008, driving the Chinese economy to a near halt.

‘China will not issue more tightening measures,’ said Yang Guohua, a property analyst with Oriental Securities. ‘The overall tightening policy will still be implemented, but there may be some fine-tuning in the second half.’

Much will come down to how bank branches and local governments interpret rules.

After the banking regulator reiterated the ban on third-home mortgages, one commercial lender in Beijing told Reuters that such loans were absolutely forbidden. But a state bank in the booming port town of Ningbo said that a third-home mortgage could be arranged, provided the borrower’s credit record was clean.

Still, investment in the property sector, running at 38 per cent over a year earlier, is sure to slow.

As that happens, the central government will spend more on public housing to pick up the slack and cushion the economy, said Sun Xuegong, a researcher in the National Development and Reform Commission, a powerful central planning agency.

Source : Reuters – 15 Jul 2010

Tuesday, July 13, 2010

Waterway Terraces BTO project sees huge interest

The HDB Build-to-Order (BTO) project in Punggol, Waterway Terraces, is proving a big draw for home buyers.

With hours to go before applications close, some 5,422 home buyers have indicated their interest to own one of the five-room units available.

That’s close to 18 times the number of such units on offer.

Demand was also high for the four-room units.

Close to 6,900 applications have been received so far – more than 11 times the 588 available units.

Three-room flats were also popular with home buyers.

Some 970 applications were received for the 178 units available.

The project is Singapore’s first public waterfront housing, consisting of 1,072 premium flats with eco-friendly designs and features such as rain gardens and solar power.

The development will be ready in the first quarter of 2015.

Two other BTO projects were launched in Sengkang – Rivervale Arc and Fernvale Foliage – at the same time.

These, however, were less well-received.

Some 3,120 applications were received for the 1,624 two-, three-, four- and five-room flats available.

Source : Channel NewsAsia – 13 Jul 2010

Monday, July 12, 2010

Changing face of Duxton

Re-gentrification of the once trendy area that has suffered a blow to its reputation is starting to take root, report OLIVIA HO and JAIME EE

WHEN it came to picking a location for her new gastrobar, Celina Tan had myriad options to choose from. She could join the here-today-gone-in-six-months concept restaurants that clutter Dempsey village, the quieter, leafy surrounds of Rochester Park, or even add to the bohemian buzz of, say, Wessex Estate in Portsdown Road. Instead, she chose Duxton Road – better known as the ‘other Geylang’ with its proliferation of KTV bars and ladies of the night trying to interest pub-goers in their own daily specials.

Call it a leap of faith, but Ms Tan – who runs the five-month-old Celina’s with her husband – is but one of the new residents of the Duxton area who believe they can breathe respectable life into the once trendy neighbourhood that has suffered a blow to its reputation over the past decade.

Before the phrase ‘lifestyle enclave’ became part of the vocabulary of Singaporean hipsters, the Duxton area – comprising Duxton Road, Duxton Hill and neighbouring Craig Road – was home to upscale F&B outlets such as the fine-dining French restaurant L’Aigle D’or at the former Duxton Hotel, and quaint eateries such as a Brittany-style creperie which specialised in authentic buckwheat pancakes from the French region.

Thomas Choong, owner of bespoke Chinese restaurant Xi Yan on Craig Road, fondly recalls classic establishments such as J J Mahoney’s and Elvis, popular in the late 1980s and the early 1990s. ‘J J Mahoney’s was a very nice pub,’ he says. ‘In fact, they were the pub in Singapore, and Duxton area was the place to be. Before Dempsey, before many other places.’

Residential element

However, as their fortunes turned, so too did the surrounding area as dubious nightspots began to make the area their playground. ‘At first there were not so many sleazy pubs,’ says Karen Scharenguivel, a manager at HBH Singapore who has worked in various places around the area for 20 years. ‘Then they cropped up one by one. Like ants to honey.’

That is all set to change, thanks to police enforcement and the onset of housing developments such as the iconic Pinnacle@Duxton which will inject a strong residential element to the neighbourhood. It may take a while, but the re-gentrification of Duxton is starting to take root.

Besides Celina’s – which specialises in matching food and wine – there is also the four-month-old Pavilion Chinese restaurant in Craig Road, and the just-opened Japanese restaurant Mizu. Then there is the 11/2-year-old Saraceno, at the now renamed Berjaya Hotel, and a popular two-year-old Irish pub Toucan.

Non-F&B set-ups include Elite Bicycles, a concept store from the United States which fits and repairs bikes. Located on Duxton Hill, it is already seeing a steady clientele from the Pinnacle, says Daphne Wee, director of Elite Bicycles Asia. ‘We are getting a lot of walk-in business from residents who want their bikes repaired.’ When asked why they chose to open in Duxton, Ms Wee shrugs and says, ‘This place has edge. And a big parking lot.’

Like the other tenants in the area, Ms Wee takes comfort in the changes that are taking place. Despite having been open for only one month, she’s already noticed that ‘one of the neighbouring pubs is moving out on Saturday’. Soon, she adds, ‘this whole place will be re-gentrified’.

Old-timers such as Steve Hansen of BROTH and Rolando Luceri of Pasta Brava are confident that the era of the karaoke pubs will soon be over. ‘I think the government is planning to clear the area, especially with that big condo Pinnacle so near,’ theorises Mr Luceri. ‘There are a few bars that already moved out, a lot of places that can be reused.’

Mr Hansen adds: ‘I hear the police are not issuing liquor licences any more. If you want to have a pub in Duxton Road, you have to buy up an existing one.’

At the moment, there are about seven empty spaces in Duxton Road and Duxton Hill that have been vacated by karaoke bars. Marcus Lim, the property agent for one of the shophouses, says that several parties who enquired about renting the premises were from the F&B business. For the karaoke bars that remain, control is tight. One pub owner, who declined to be named, said that the police perform checks on his pub a couple of times a week, usually after midnight.

In the daytime, Duxton possesses a picturesque, almost village-like quality. Up on Duxton Hill, the elegant facades of conservation shophouses line cobble-stoned streets. Were it not for the neon signs hanging lifelessly in the sunlight, it would be hard to imagine that it takes on an uglier facade after dusk.

It’s the secluded beauty of Duxton that Mr Hansen hopes will prevail with the cleaning up of the area. He feels that it’s this intangible charm that has contributed to the staying power of his 10-year-old restaurant. ‘For me, my instinct tells me it’s just the setting of the street,’ he says. ‘I can see the impression it has on people’s faces when they first come here.’

Concurs Keith Winders, general manager at Australian steakhouse Uluru. ‘It’s a lovely place – in the early evening you can see sunbirds in the trees.’ Adds Celina’s Ms Tan: ‘It’s very quaint. Especially Duxton Hill – it’s much prettier than so many other places.’

Its old-world charm, lower rental and proximity to the central business district are the reasons that Ms Tan took the plunge to open in Duxton, but the challenge now is still to convince the public that the time is right to re-discover the place. While stalwarts like BROTH and Pasta Brava maintain a regular following, traffic is slow for some of the newer entrants.

‘People don’t actually realise that it is changing,’ says Ms Tan. While she and her husband personally do not mind the ‘girly bars’, she does feel that their reputation affects traffic. ‘I don’t want them to be completely gone, but I also don’t want them to be coming out into the street. The men may feel comfortable but the women don’t, and when you don’t get women you don’t get customers. Like that, it’s very hard to get regular clientele.’

Celina’s currently opens only on weekdays as it caters to the crowd from the nearby financial district. However, if it is popular with the residential crowd, it will open on weekends. ‘We are practically at their back door,’ says Ms Tan’s husband, Fook Onn Kok, gesturing animatedly at the glittering 50-storey-high Pinnacle towering over Duxton Road.

One Duxton Road tenant which is seeing increased activity due to the Pinnacle is the five-year-old spa Glow International. Partner Lily Kew has already signed up five residents for Glow’s spa packages. Two of them even signed up as early as 2008 because they knew they were going to move in. Ms Kew adds that she’s also seeing more walk-in customers.

Mr Hansen admits to a love-hate relationship with the seedy side of Duxton. ‘It’s been quite entertaining for our guests – they have to wade through all the action going on down there,’ he says.

But he is less inclined to feel the same way when BROTH gets entangled in the action. Four years ago, his staff were taking out the trash one Friday night when a bottle rolled out and smashed. The sound attracted the attention of a group of drunks on the pavement, who took it to be a challenge and assaulted Mr Hansen’s staff. A police report was made and it subsequently became a court case.

Presence of expats

It doesn’t mean that decent pubs don’t have a place in Duxton. The Irish pub Toucan, for example, gets an average of 100 customers a night, says outlet supervisor Mohammed Farid. The location was chosen because of the expats living in the area – 80 per cent of its clientele are expats with 20 per cent being locals, adds Mr Mohammed.

The Pinnacle, though, has been a definite draw for tenants such as Kelvin Lee, chef-owner of Pavilion. ‘It adds life to the area,’ he says. ‘There are a lot of offices around here, and the rent is affordable so we use the savings to offer great quality at reasonable price.’

Attracted by the old-world charm of the area, Mr Lee thinks the area ‘will become another Keong Saik Street – it used to be a red-light district but now it’s a hip area with plenty of good restaurants and boutique hotels.’ Business at Pavilion has been good too, with lots of repeat customers. ‘We do over 100 covers a day,’ adds Mr Lee.

While restaurants and nightspots seem to dominate the area, Duxton’s tenants hope that other lifestyle businesses will move in to offer more variety, such as nearby Club Street. ‘Not just food and drink, but other lifestyle options, like a bakery or even a Singaporean Dean & Deluca,’ says Kathy Lim-Sheehy, CEO of the Singapore Straits Wine Company, which supplies wine to many restaurants in the area. ‘An upmarket bookstore would be great,’ adds Ms Tan.

‘It would be great to have more of a buzz,’ agrees Mr Hansen, adding too many eateries would have a saturation effect. ‘It would be a travesty to have a restaurant in every single shop, like at Boat Quay or Clarke Quay,’ he says. ‘If that happened here, I would be the first to throw up my hands and go.’

That probably won’t happen. Perhaps as new entrepreneurs warm to the appeal of Duxton, an organic growth will finally turn the area into what it was always meant to be – an eclectic neighbourhood with an old-world charm.

Source : Business Times – 9 Apr 2010

Regent Grove a steal at $665 psf

Even though transactions of new home sales have dropped, prices seem to have held up.

For bargain hunters who are looking for properties in the price range of $600 psf, one can consider Choa Chu Kang. Take for instance the 553-unit Regent Grove, a 99-year leasehold condominium located at Choa Chu Kang North 7 (near the Yew Tee MRT station.) It appears to be drawing homebuyers on the lookout for reasonably priced mass market condominiums in the suburbs. From June 8 to 15, there were five transactions at the development at prices ranging from $590 to $665 psf, according to caveats lodged with URA Realis.

With its proximity to an MRT station, the current prices at the 10-year-old condo developed by Far East Organization are considered attractive to buyers who are planning to buy a home that fits their budget. According to property agent Steven Chen of PropNex, affordability and proximity to the MRT station have been the two key attractions for homebuyers at Regent Grove.

In the latest transactions, the highest psf price achieved at Regent Grove was $665 psf on June 9, when a 926 sq ft two-bedroom unit on the 11th floor of Block 54 was sold for $616,000. This represents a 14% gain for the seller, who purchased the unit for $541,000 ($584 psf) from the developer in November 1999.

On the 10th floor of the same block, a 1,173 sq ft three-bedroom unit was sold for $770,000 ($656 psf) on June 8, providing a 25% gain for the seller who bought the unit for $617,400 ($526 psf) from the developer in October 2000.

On the seventh floor of the same block, a seller reaped a significant gain of 76% when he sold a 1,259 unit for $748,000 ($594 psf) on June 9. The seller bought the unit for $425,000 ($337 psf) in March 2006. Before this, the unit changed hands at a higher price of $638,000 ($507) on the resale market in March 2003.

Another similar-sized unit on the 12th floor at Block 52 was sold for $750,000 ($596 psf), giving a gain of 27% to the seller who purchased the unit for $589,000 ($468 psf) from the developer in August 1998.

Meanwhile, the fifth unit that changed hands was a 1,195 sq ft three-bedroom unit on the sixth floor at Block 50, which went for $705,000 ($590 psf). This represents a 34% gain for the seller, who purchased it at $525,000 ($439 psf) from the developer in March 1999.

Regent Grove is one of the few remaining developments in the Choa Chu Kang district where the average asking prices for units are still capped below $650 psf, according to Kelly Yu, marketing director of ERA.

Other condos in the area include Northvale and The Warren. At The Warren, which is newer given that it was completed in 2004/05, transaction prices over the last two months were between $648 and $731 psf, according to caveats lodged in May to June. Meanwhile, at the 12-year-old Northvale, transactions over the last two months have been in the range of $560 to $668 psf, according to caveats lodged with URA Realis.

At Mi Casa, a 457-unit Far East Organization project at Choa Chu Kang Avenue 3 (located across the street from Lot 1 Shoppers’ Mall ) that was launched late last year, more than 420 units have been sold as at end-May at a median price of $794 psf, according to URA’s monthly new home sales.

According to Citi’s latest research report last Monday, new mass-market condo prices will likely remain strong, given the support of capital gains from existing HDB flats at a seven-year high, and low mortgage rates. Fuelling investment demand for such properties is the rental yield of 4.25% compared with mortgage rates of below 2%. Citi expects prices in the massmarket segment to be capped at the $900 to $1,000 psf levels. Hence, investors may be zeroing in on older condos priced in the $600 psf range with immediate rental potential.

‘Everything has been done for us’

  Golden Jasmine boasts wide range of facilities

The studio apartments in Bishan, Golden Jasmine, boasts a service centre to tend to the needs of its elderly residents – the first of its kind here.

Among the facilities for residents are health talks, games as well as a physiotherapy and a traditional Chinese medicine clinic. Service centre staff will also be on hand to respond to emergency calls by residents.

Deputy Prime Minister Wong Kan Seng, who was the Guest-of-Honour at the completion ceremony for Golden Jasmine yesterday, said the centre will also provide information and referral services for residents as well as manage the communal space where activities for the residents can be held.

Through these avenues, the hope is that it will encourage active ageing as well as mutual care and support among residents, said Mr Wong, who is also Member of Parliament for Bishan.

The Housing and Development Board (HDB) and the Ministry of Community Development, Youth and Sports (MCYS) spearheaded this pilot project.

Econ Healthcare manages the centre and its services come free, said chief executive officer Chua Song Khim.

Pitched as a housing option for seniors seeking an independent lifestyle, there are 176 units at Golden Jasmine which come in two sizes, 35 and 45 square metres.

HDB said the units provide sufficient living space for a one- or two-person household.

All the apartments are sold in a ready-to-move-in condition with elderly-friendly fittings such as kitchen cabinets and gas stove, wardrobe, light fittings as well as features like grab bars, which aid mobility.

They are also located within established towns with convenient access to commercial facilities and which are well served by public transport.

These apartments come with a 30-year-lease and are meant for those who are at least 55 years old with a monthly household income of up to $8,000.

It was these features, as well as the affordability, that prompted Mr M Vallasamy, 57, to downgrade from his five-room flat in Bishan for a unit at Golden Jasmine.

He will be moving into the apartment this week with his 50-year-old wife and 24-year-old son, he added.

“Everything has been done for us, which is good,” said Mr Vallasamy, who is self-employed. “The flats are smaller and easier for us to maintain,” he added.

To date, HDB has launched about 3,400 studio flats. It will continue to build more such flats in various locations to meet the needs of the ageing population.

Source : Today – 12 Jul 2010

HK restricts buyers to one flat under new policy

The Larvotto development rises above boats moored in the Ap Lei Chau district of Hong Kong. Under a new policy, buyers will only be able to purchase one flat and will not be permitted to resell the unit before its completion date. The guidelines issued by the Real Estate Developers Association follow a police probe into the controversial sale of luxury flats that fell through months after its developer said one of them had set a world-record price, a report said on June 27.

Source : Today – 12 Jul 2010